Endurance Technologies Limited has announced that the capital expenditure for a greenfield project has been approved and that the Company plans to set up a new facility to manufacture alloy wheels for two wheelers on a land parcel of ~30 acre situated at Aurangabad Industrial City ("AURIC"), Bidkin, Dist. Chh. Sambhajinagar.

The Company currently manufactures alloy wheels at its plant in Chakan, Dist. Pune, where the capacity stands at 230,000 sets per month. The Proposed capacity installation is 180,000 sets of two-wheeler alloy wheels per month.

Planned capex for this facility, including the aforesaid land, is Rs. ~3,000 million (net of GST credit).

Alloy wheels add the advantage of higher fuel efficiency, better heat dissipation, enhanced vehicle performance and aesthetics in two wheelers. This, along with import substitution and higher two wheeler production by OEMs, is accelerating the demand for domestic alloy wheels.

The Company currently manufactures and sells alloy wheels from its facility in Chakan, Dist. Pune, with consistently strong performance on quality, cost and delivery parameters. Considering peak capacity utilization at the existing plant and high inflow of new orders, setting up of this new facility is necessary.